XRP may be setting up for a decisive move that could reshape its market outlook heading into 2025. Technical analysts are closely watching a cup-and-handle formation on the chart, a pattern often seen before major bullish reversals.
The formation has been taking shape over several months. The “cup” reflects a gradual recovery after an extended correction, where long-term holders accumulated XRP, creating a rounded base.
On Tuesday, market analyst Milkybull shared a chart highlighting this setup, describing it as a classic structure that typically appears at market bottoms before a breakout.
If XRP manages to close decisively above the handle’s upper boundary, chart projections suggest a potential rally toward $5, marking over a 100% gain from current levels.
On-Chain metrics back the technical picture
Market behavior on the blockchain appears to support this bullish setup. Data from CryptoQuant shows the 90-day Spot Taker Cumulative Volume Delta (CVD) for XRP has turned taker-buy dominant for the first time since mid-2025. The CVD metric measures whether trades are being driven by buyers or sellers; when it flips positive, it typically reflects strong market buying at current prices rather than waiting for lower bids.
The “handle” represents a brief period of consolidation before momentum builds again.
The last time this signal appeared, XRP jumped roughly 75% within weeks, an encouraging parallel for traders betting on a repeat.
ETF momentum adds institutional tailwind
Adding to the optimism is growing speculation around potential spot XRP exchange-traded funds (ETFs) in the United States. The excitement gained traction after the Senate reached a deal to resolve the prolonged government shutdown, restoring confidence across risk assets.
The Depository Trust & Clearing Corporation (DTCC) website now lists 11 XRP ETF products under active or pre-launch categories, including filings from 21Shares, Bitwise, CoinShares, ProShares, and Franklin Templeton. Market commentators such as Nate Geraci and Eric Balchunas suggest that this policy shift could open the path for XRP ETFs to enter U.S. markets sooner than expected, potentially channeling institutional demand into the asset.
A familiar setup returns
The convergence of technical strength and on-chain accumulation mirrors XRP’s rally in June, when similar indicators preceded a 75% upswing. Traders are now watching for confirmation: a clean breakout above resistance could signal the start of a new leg higher, possibly toward the $5 mark by late 2025.
For now, XRP sits at a pivotal juncture, supported by data, buoyed by speculation, and watched closely by both retail and institutional traders looking for the next major crypto comeback.
Gunel Ismayilova
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